Interim Update Q Results Analyst presentation - 6 November 2017

Transcription

1 Jack de Kreij Vice-Chairman of the Executive Board and CFO of Royal Vopak Interim Update Results Analyst presentation - 6 November

2 Forward-looking statement This presentation contains forward-looking statements, based on currently available plans and forecasts. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future, and Vopak cannot guarantee the accuracy and completeness of forward-looking statements. These risks and uncertainties include, but are not limited to, factors affecting the realization of ambitions and financial expectations, developments regarding the potential capital raising, exceptional income and expense items, operational developments and trading conditions, economic, political and foreign exchange developments and changes to IFRS reporting rules. Vopak s outlook does not represent a forecast or any expectation of future results or financial performance. Statements of a forward-looking nature issued by the company must always be assessed in the context of the events, risks and uncertainties of the markets and environments in which Vopak operates. These factors could lead to actual results being materially different from those expected, and Vopak does not undertake to publicly update or revise any of these forward-looking statements. 2

3 YTD key figures Terminal network In million cbm +4% vs. YTD 16 Occupancy rate* In percent -4pp vs. YTD Occupancy rate of % is supported by sound business drivers in all the product-market segments throughout our network, whereby the difference with the high occupancy rate of 94% is primarily due to a presently less favorable oil market structure Revenues* -3% vs. YTD 16 EBITDA** -9% vs. YTD EBITDA decreased 9% to EUR 571 million caused by a lower occupancy rate, in line with our previous guidance of a 5-10% lower EBITDA. Adjusted for the divestments early, the pro forma EBITDA decreased by 7% * Occupancy rate and revenues figures include subsidiaries only ** Including net result from joint ventures and associates and excluding exceptional items 3

4 YTD Developments Terminal network In million cbm Subsidiaries Joint Ventures & Associates Operatorship Occupancy rate* In percent pp Revenues* ,036 1, % EBIT & EBITDA** EBITDA EBIT % 571 Net profit*** % 211 Senior Net Debt : EBITDA**** * Occupancy rate and revenues figures include subsidiaries only ** Including net result from joint ventures and associates excluding exceptional items *** Attributable to holders of ordinary shares excluding exceptional items **** For certain projects in joint ventures, additional limited guarantees have been provided, which are included in the Senior net debt : EBITDA 4

5 Occupancy rate developments Occupancy rate* In percent YTD 94% YTD % -95% 85-% Q1 Q2 Q4 Q1 Q2 Occupancy rate of % is supported by sound business drivers in all the product-market segments throughout our network, whereby the difference with the high occupancy rate of 94% is primarily due to a presently less favorable oil market structure * occupancy rate figures include subsidiaries only 5

6 Well-balanced global portfolio Oil products Chemical products Industrial terminals Vegoils & biofuels Gas products Typical contract duration per product & terminal category 0-5 years 0-5 years 5-20 years 0-3 years years Share of EBITDA* Share of EBITDA* Share of EBITDA* Share of EBITDA* ~50% ~20% 15-20% % 2.5-5% 45-50% 20-25% 20-25% 5-7.5% 2.5-5% 40-45% 20-25% 20-25% 5-7.5% 3-5% * EBITDA including net result from joint ventures and associates and excluding exceptional items 6

7 YTD Divestments FX-effect Adj. YTD Americas LNG Netherlands Asia EMEA Others YTD YTD EBITDA analysis EBITDA -excluding exceptional items- decreased 9%, adjusted for the divestments early, the pro forma EBITDA decreased by 7% Figures in EUR million, excluding exceptional items including net result from joint ventures and associates 7

8 YTD Segmented EBITDA Netherlands EMEA Netherlands EMEA Asia Fuel Oil Market Chemical capacity out of service Cleaning and innovation costs Divestments Singapore Fuel Oil Market Missing contribution Haiteng Americas LNG Sound chemical performance Growth in Brazil Reducing financing expenses Asia Americas LNG Occupancy rate for subsidiaries only EBITDA including net result from joint ventures and associates and excluding exceptional items 8

9 Q2 FX-effect Adjusted Q2 Netherlands LNG Asia EMEA Americas Others vs Q2 EBITDA analysis Netherlands Asia EMEA Others Less operating expenses Singapore revenues Costs related to growth Impact Jetty damage Figures in EUR million, excluding exceptional items including net result from joint ventures and associates 9

10 Further aligning the global network Vopak Terminal Eemshaven Divestments and change of ownership Change in ownership in Vopak Terminal Eemshaven, Vopak will retain 10% of the shares and continue to manage and operate the terminal US: Galena Park and Wilmington terminals Finland Japan Vopak Terminal Eemshaven comprises 11 tanks with a storage capacity of 684,000 cbm for gasoil and gasoline Sweden UK Vopak Terminal Eemshaven Cash Proceeds* in EUR million Exceptional Gain in EUR million Cash Proceeds* - in EUR million Exceptional Gain - in EUR million ~ 800 ~ 3 * Excluding cash outflows for tax Above depicted timeline includes the main divestments and is for illustration purposes only * Excluding cash outflows for tax 10

11 Subsequent event Vopak has decided to voluntarily prepay the remaining USD 200 million on the USPP 2007 loans (maturity dates in 2019 and 2022), including accrued interest and make-whole amount. The early repayment will further optimize Vopak s long-term financial flexibility and positively impact its future financing expenses Debt repayment schedule in EUR million; before prepayment 1,100 1,000 RCF flexibility RCF drawn Other Subordinated US PP US PP Asian PP

12 Key messages OUTLOOK Taking into account the current market dynamics, missing contributions from the divested terminals early and additional costs related to investments in growth and technology, we expect the EBITDA -excluding exceptional items- to be around 10% less than the EBITDA of EUR 822 million The majority of the current projects under construction (3.2 million cbm), backed by commercial storage contracts, will start to contribute positively in the course of 2019 LOOKING AHEAD The successful realization of the efficiency program in the period will help reduce Vopak s future cost base with at least EUR 25 million Vopak will continue its disciplined long-term growth journey, while maintaining on average a Cash Flow Return On Gross Assets (CFROGA) after tax between 9-11% for the total portfolio, supported by a strong balance sheet, financial flexibility and solid operational cash flow generation 12

13 Other events The Supervisory Board of Vopak will nominate Gerard Paulides to be appointed as Chief Financial Officer and member of the Executive Board effective 1 February 2018 An Extraordinary Shareholders Meeting is called for on Friday 15 December Dec 12 Vopak will host an Analyst Day on 12 December for its sell-side analysts to provide an update on the oil market and to highlight the key developments per product-market segment including chemicals, gases and LNG Vopak will organize its next Capital Markets Day in HY

14 The world s leading independent tank storage company building on an impressive history of more than 400 years Questions & answers

15 Royal Vopak 6 November Analyst presentation Interim Update Results

16 Quarterly Segmented EBITDA Netherlands EMEA Netherlands EMEA Asia Fuel Oil Market Chemical capacity out of service Cleaning and innovation costs Costs related to growth Singapore Fuel Oil Market Q4 Q1 Q2 Q4 Q1 Q2 Americas Strong chemical performance Asia Americas LNG Q4 Q1 Q2 Q4 Q1 Q2 Q4 Q1 Q2 Occupancy rate for subsidiaries only EBITDA including net result from joint ventures and associates and excluding exceptional items 16

17 YTD Netherlands developments Occupancy rate* In percent Revenues* Storage capacity In million cbm EBITDA** EBIT** * Subsidiaries only ** EBIT(DA) including net result from joint ventures and associates and excluding exceptional items 17

18 YTD EMEA developments Occupancy rate* In percent Revenues* Storage capacity In million cbm EBITDA** EBIT** * Subsidiaries only ** EBIT(DA) including net result from joint ventures and associates and excluding exceptional items 18

19 YTD Asia developments Occupancy rate* In percent Revenues* Storage capacity In million cbm EBITDA** EBIT** * Subsidiaries only ** EBIT(DA) including net result from joint ventures and associates and excluding exceptional items 19

20 YTD Americas developments Occupancy rate* In percent Revenues* Storage capacity In million cbm EBITDA** EBIT** * Subsidiaries only ** EBIT(DA) including net result from joint ventures and associates and excluding exceptional items 20

21 YTD JVs & associates developments Net result JVs and associates* Netherlands* EMEA* Asia* Americas* LNG* * Excluding exceptional items 21

22 EBITDA to Net profit analysis YTD 17 YTD 16 EBITDA Depreciation and amortization EBIT Net finance costs Income tax Non-controlling interests Net profit to holders of ordinary shares EPS 1.66 EPS 2.00 Figures in EUR million, excluding exceptional items including net result from joint ventures and associates 22

23 For more information please contact: Media contact: Liesbeth Lans, Manager External Communications Telephone: +31 (0) , Investor Relations contact: Anil Acardag, Manager Investor Relations Telephone: +31 (0) , Royal Vopak Westerlaan CK Rotterdam The Netherlands Royal Vopak 6 November Analyst presentation Interim Update Results